London’s Hyde Park and NYC’s Central Park show how a grassy view can heap value on prime real estate prices
New prime build homes with views over major parks and green spaces command an average price premium of 34 per cent compared to a home lacking the view, according to global property consultancy Knight Frank
Homes with park views not only improve quality of life, they can also command substantial premiums. Living close to nature has wide-ranging benefits for physical and mental health, many studies assert.
That is not easy to achieve in an urban environment, but some research suggests that just being able to look at greenery might be enough to make a difference. With the United Nations estimating that more than half the world’s population (55 per cent) now lives in cities – a figure expected to rise to 68 per cent by 2050 – that makes a room with a view sound more appealing and a good investment, according to Knight Frank research.
The global real estate services firm looked at new prime build homes in major cities worldwide, and found that those with views over major parks commanded an average price premium of 34 per cent compared to an equivalent home lacking the view.
The researchers found that a park view is even more important than direct access, as having a park adjacent adds, on average, only 18 per cent value to a home.
Of the five cities analysed – London, New York, Sydney, Hong Kong and Singapore – London and New York lead the rankings in terms of the highest price premiums. Properties with views of London’s Royal Parks can command a 75 per cent premium, while prices in New York are 63 per cent higher on average.
When considering park-adjacent premiums, proximity to London’s Royal Parks can achieve a 33 per cent premium on average, with a 29 per cent premium on properties next to New York’s Central Park.
Flora Harley, research analyst at Knight Frank, equates this trend to the value people place on greenery.
“There is a wealth of evidence that supports the positive benefits of living close to green space,” she says. “A recent academic study published in 2019 found that living within 300 metres of urban green space such as parks, nature reserves or play areas is associated with greater happiness, a higher sense of worth, and improved life satisfaction.